Rose

THE JAMAICA Association of Young Professionals (JAYP) has expressed disappointment with government's persistence with income tax.

"We are asking for a general look at some of the recommendations contained in the Matalon report. For instance, we would like government to look at cutting income tax and possibly edging up GCT," Junior Rose, the association's chairman said.

Rose told The Gleaner that, by conservative estimates, young professionals contribute over $70 billion yearly through direct taxation. He said eliminating income tax would mean greater disposable income for young professionals, and it would give them a greater opportunity to invest in the country's productive sector.

Great tax burden

"Young professionals have been carrying a great deal of the tax burden and it would have been a good move had government gone the way of increasing the tax on business profits, at least in the short term, and relieving PAYE persons of this burden," Rose said.

He added that while increased GCT would make life tougher for poorer Jamaicans, government could compensate for the increased cost of goods and services by instituting a stronger social security net.

Rose told The Gleaner that his organisation had analysed the effects of government's latest tax package on young professionals and by those calculations, it will take an additional half-billion dollars monthly from young people's pockets.

"The tax measures will have a tremendous effect on young professionals but we recognise the need to address the fiscal problems of the country. While we pay our taxes, our request is that there be a commensurate drive to support small and medium size businesses that young professionals and young entrepreneurs are operating," Rose told The Gleaner.

Prime Minister Golding on Wed-nesday announced his govern-ment's fifth review of revenue measures for the calendar year. The package is aimed at raising $21.8 billion in revenue.

Stimulus needed

The JAYP president reasoned that government should follow up its tax package with a stimulus programme that would encourage productivity. Rose said his association had possible solutions it wished to share, and hoped for dialogue with government.

Meanwhile, the National Demo-cratic Movement (NDM) on Tuesday joined the Opposition People's National Party in calling on Prime Minister Bruce Golding to debate and have Parliament vote on the latest proposed tax package this week.

"The Movement is deeply concerned that the Prime Minister intends to implement these new draconian tax measures by January 1, 2010 before bringing it to Parliament. Parliament should be the peoples' parliament and not a rubber stamp parliament, as it continues to be," the NDM said in a press release.